Virus Exclusion Applies to Restaurants’ COVID-19 Losses, N.J. Federal Judge Rules

CAMDEN, N.J. – Virus exclusions prevent the owners of restaurants in New Jersey, Delaware, Florida and Washington from collecting insurance proceeds for losses they sustained as a result of civil closure orders issued in response to the COVID-19 pandemic, a federal judge has ruled.

On March 12, Judge Renee Bumb of the U.S. District Court for the District of New Jersey rejected the insureds’ argument that the exclusions require actual contamination by bacteria or virus at the insured properties.

Colby Restaurant Group Inc., BBR Lauderdale, LLC d/b/a TA Walk On’s Bistreaux, and SRG Southcenter, LLC d/b/a Twin Peaks were …